Yahoo Finance Allianz SE (ALIZY) is a Top Dividend Stock Right Now: Should You Buy?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Allianz SE in Focus
Allianz SE (ALIZY) is headquartered in Munich, and is in the Finance sector. The stock has seen a price change of 11.1% since the start of the year. The company is paying out a dividend of $0.87 per share at the moment, with a dividend yield of 3.66% compared to the Insurance - Multi line industry's yield of 2.27% and the S&P 500's yield of 1.74%.
In terms of dividend growth, the company's current annualized dividend of $0.87 is up 10.8% from last year. Allianz SE has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 2.96%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Allianz SE's payout ratio is 47%, which means it paid out 47% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, ALIZY expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $2.53 per share, which represents a year-over-year growth rate of 47.95%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that ALIZY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Allianz SE (ALIZY) : Free Stock Analysis Report
